National Insurance Contributions
Class 1 (Employees) Not Contracted out of State Second Pension S2P
2010/11 2009/10
© Copyright 22 June 2010, subject to final legislation. For information only. Always seek professional advice before acting.
Employee Employee
No NICs where earnings are up to £110 a week 11% NICs on £110.01-£844 a week 1% NICs over £844 a week No NICs where earnings are up to £110 a week 11% NICs on £110.01-£844 a week 1% NICs over £844 a week
Employer Employer
No NICs on the first £110 a week
12.8% NICs over £110 a week 		No NICs on the first £110 a week
12.8% NICs over £110 a week

 

 

Earnings limit or threshold
2010/11
2009/10
© Copyright 22 June 2010, subject to final legislation. For information only. Always seek professional advice before acting.
 
Weekly
Monthly
Annual
Weekly
Monthly
Annual
Lower earnings limit £97 £421 £5,044 £95 £412 £4,940
Earnings threshold £110 £476 £5,715 £110 £476 £5,715
Upper accrual point £770 £3,337 £40,040 £770 £3,337 £40,040
Upper earnings limit £844 £3,656 £43,875 £844 £3,656 £43,875

 

 

Contracted-out S2P rebate 2010/11 2009/10
© Copyright 22 June 2010, subject to final legislation. For information only. Always seek professional advice before acting.
Reduction on band earnings £97.01-£770 pw £95.01-£770 pw
Employer rate reduction
- Salary-related scheme 3.7% 3.7%
- Money-purchase scheme 1.4% 1.4%
Employee rate reduction 1.6% 1.6%

 

 

Class 1A (Employers) 2010/11 2009/10
© Copyright 22 June 2010, subject to final legislation. For information only. Always seek professional advice before acting.
Most taxable employee benefits 12.8% 12.8%

 

 

Class 2 (Self-Employed) 2010/11 2009/10
© Copyright 22 June 2010, subject to final legislation. For information only. Always seek professional advice before acting.
Flat rate £2.40 pw £124.80 pa £2.40 pw £124.80 pa
Small earnings exception £5,075 pa £5,075 pa

 

 

Class 4 (Self-Employed) 2010/11 2009/10
© Copyright 22 June 2010, subject to final legislation. For information only. Always seek professional advice before acting.
On profits £5,715-£43,875 pa - 8% £5,715-£43,875 pa - 8%
  Over £43,875 pa - 1% Over £43,875 pa - 1%

 

 

Class 3 (Voluntary) 2010/11 2009/10
© Copyright 22 June 2010, subject to final legislation. For information only. Always seek professional advice before acting.
Flat rate £12.05pw £626.60 pa £12.05pw £626.60 pa

 

This summary has been prepared very rapidly and is for general information only.

The proposals are in any event subject to amendment before the Finance Act is passed.

It is recommended you seek competent professional advice before taking any action on the basis of the contents of this publication.